Suit May Slow Cogen Permits

June 04, 1990|by BOB LAYLO, The Morning Call

A Lake Hauto woman has asked federal court in Harrisburg to stop a state agency from issuing permits for a proposed, controversial cogeneration plant in Nesquehoning until a complete investigation of a nearby toxic waste site is complete.

Kathleen M. Callaghan, of Fern Terrace, Nesquehoning R.1, filed a motion for a temporary restraining order Friday to stop the state Department of Environmental Resources from issuing permits to Panther Creek Partners for its cogeneration plant.

Pegasus Power Partners of San Diego and Constellation Development Inc. of Baltimore are the partners for the cogeneration project. Two weeks ago, a company spokeswoman said she expected to have the permits -- air quality and surface mining -- sometime this month.

If built, the 80-megawatt, $165-million plant would burn anthracite waste, called culm, to generate steam for electricity for 12 to 18 years. Metropolitan Edison Co. would buy the electricity.

Contacted yesterday, Callaghan, a Lake Hauto resident since 1984, said she wants the federal Environmental Protection Agency to investigate the extent of contamination on and around the former Tonolli Corp. battery recycling before any construction begins on the cogeneration plant.

DER and Panther Creek Partners officials could not be reached for comment yesterday.

Tonolli Corp. operated from a 20-acre site along Route 54 in Nesquehoning from 1976 to 1986, near the proposed cogeneration site. The Tonolli site, according to EPA, is contaminated with lead, cadmium, chromium and arsenic -- toxic heavy metals.

Last year, the EPA spent $1.3 million for an emergency cleanup of the site, removing storage tanks, soil and water contaminated with the metals. The EPA has yet to determine the nature and extent of contamination around the Tonolli site; and that concerns Callaghan.

"Why don't they wait until the EPA is done?" Callaghan asked. "The coal won't go anywhere."

Callaghan, a certified public accountant and law school student, said she decided to file the suit when she learned from a newspaper story that the company expected to get the permits this month.

Callaghan said she had obtained a letter to Constellation Development, DER, and other officials from Donna M. McCartney, the EPA project manager for the Tonolli site, that prompted the suit .

The May 29 letter tells the company that the EPA has not determined the extent of contamination at the site. The letter also outlined the EPA's concerns about the site, and informed the company that some testing by Panther Creek's engineering firm around the site was inadequate.

For example, McCartney writes: "The surface water samples collected by Benatec (Panther Creek's engineering firm) do not include analysis for heavy metals."

McCartney also informed the company that some soil sampling was taken from locations distant from the border of the Tonolli site and a surface sediment sample from the proposed cogeneration site showed a level of lead that may be attributed to Tonolli.

Callaghan said she plans to include the letter and another from November of last year in her suit when a preliminary hearing is held.

"The only reason I went and filed this with giving oral notice to the DER is because of a newspaper article saying they'll get the permits in June," Callaghan said. "I felt that I had to do this."

Callaghan said she expects a judge to rule on her motion this morning, and at the same time, set a date for a preliminary hearing on a lawsuit.